was attached following seizures by the FBI and State and local police from gambling and narcotics activities in a large eastern city. Raids in a large midwestern city re- sulted in the securing of taxes from funds seized from narcotics dealers. The Intelligence Division has recently intensified its efforts against narcotics trafficking and organized crime's involvement in that area. Late in FY 1971, a new nar- cotics program was developed to prosecute middle- and upper-echelon narcotics traffickers for criminal tax viola- tions and to reduce their profits through assessing and col- lecting taxes on income from that illicit activity. During FY 1972, 200 special agents and 200 revenue agents are to be assigned to IRS districts to conduct in- vestigations of narcotics traffickers. Bureau of Alcohol, Tobacco, and Firearms. Organized crime groups have often been found in violation of Fed- eral firearms and explosives laws and have been found to hide profits from various unlawful activities in the con- cealed ownership of establishments serving or selling al- coholic beverages. This kind of activity comes under the concern of the Bureau of Alcohol, Tobacco, and Fire- arms (ATF), formerly the ATF Division, in its adminis- tration and enforcement of Federal alcohol, tobacco, fire- arms, and explosives laws. To carry out its investigative efforts into organized crime activities, ATF has assigned 19 of its personnel to the 17 strike forces outside of Washington, D.C., and some 100 field investigators to areas throughout the country. Gases for investigation are determined jointly by the field investigators, strike force representatives, and ATF representatives in Washington headquarters. Information received from the Organized Grime and Racketeering Section at the Department of Justice, developed by ATF headquarters, and uncovered in the field, is taken into consideration in making these determinations. ATF maintains daily liaison with its strike force repre- sentatives through a nationwide teletype communication system, and information received from the strike forces is transmitted to the Organized Grime and Racketeering Section. When field investigators, who carry out the major portion of the investigative effort, determine a need for prosecution, they recommend such action to the ATF strike force attorney in the area involved. The strike force then transmits this recommendation to the Organ- ized Crime and Racketeering Section, In FY 1971, ATF expended 104 man-years on its or- ganized crime efforts. The work of ATF is not aimed primarily at the major criminal activities from which organized groups profit, but at the subsidiary activities which enable those groups to pursue their involvement in the areas which are more often associated with organized crime, For example, many ATF investigations have been di- rected at uncovering violations of Federal firearms laws when the subjects are suspected of supplying firearms to organized crime figures. ATF also works closely with the Bureau of Customs in investigation of cases in which fire- arms are suspected of being smuggled into the United States for use of organized crime groups. Its work in Investigating violations of internal revenue laws pertaining to alcohol has enabled ATF to uncover a variety of types of organized crime involvement in that area. One facet of this work is the investigation of illicit distilling operations. More recently, however, ATF has been particularly helpful in uncovering racketeering ele- ments by finding that they have hidden interests or control in nightclubs, bars, restaurants, or liquor dis- tributorships. Although these may be legitimate businesses, knowledge of their existence as a location of organized crime assets often can be helpful in subsequent criminal investigations. Internal Security Division. Efforts of organized crime to penetrate IRS itself have occurred in recent years. The large amounts of money which could be gained by successful violation of tax laws make the attempted bribery or corruption of IRS officials particularly appeal- ing to organized crime groups. The Internal Security Division is charged with protecting the integrity of IRS by investigating employee misconduct in this area. One recent investigation resulted in the arrest or in- dictment of 13 IRS agents or former agents, eight orga- nized crime figures, and two certified public accountants, Another investigation resulted in the conviction of two alleged organized crime figures with sentences of 1 year Weapons seized by the Bureau of Oustoms. ction at